Rome_institute
Sign_up   Log In
« Financial Risk Management’s Biggest Challenges | Home | Energy is a Risky Business: New Risks to Watch in the Energy Sector »
Conv Ratings agencies under the spotlight
belongs to Blog  Home_xsm
by Over the Counter on Mar 21, 2007 - 12:33 PM read 436 times
Source: http://blog.risk.net/2007/03/ratings_agencies_under_the_s... 		External
Not a good month for the ratings agencies. There's been the fuss over Moody's decision (which it is now rapidly backing away from) to change its bank rating methodology. And now Bethany McLean of Fortune, who made her name when she suggested that Enron might be unsound, writes that the agencies - all of them - may be partly to blame for the continuing collapse of the US subprime mortgage business, by rating CDOs based on mortgage debt far too highly.
Janet Tavakoli, who runs Tavakoli Structured Finance, points out that AA-rated tranches of CDOs backed by subprime mortgage paper now yield far more than AA-rated debt backed by other assets - a sign that the market doesn't trust the ratings.
Read the whole thing...

BlogHome_xsm
Rating (0.0) 
Rt-00-16

Log In to Reply | Log In to Copy | Tell a Friend | Feed_small Secure_feed_16

Sponsors

Portfolio

Author Profile

Anonymous User  Feed_small Secure_feed_16

Mentor

Tag Cloud

Blog Blogs Commodities Company Updates Credit Risk Crude Oil Customer Feedback Discuss Documentation Energy Energy Risk Energy Software Vendors Enterprise Risk Managemen ERM ETRM Times Events GARP General Guides IECA Infrastructure Listening LNG Market Market Risk Marketing Natural Gas NGL Online Trading Operational Operational Risk Power Product Management Refined Products Risk Risk Management RiskResourcesSurvey ROME Insights Software Trading User Advisory Council User Council User Council Survey Webinars

Recent

Subscribe

Feed for ROME Institute:
Feed_small Public Secure_feed_16 Secure